Since the 29th of January, Binance Coin [BNB] has shed 14.63% in value. For comparison, Bitcoin [BTC] was down 12.29% in the same period. Yet, both BTC and BNB were above key swing levels on the weekly timeframe.
These levels, namely $74.5k for BTC and $500 for BNB, kept a ray of hope alive for long-term holders. At the time of writing, BNB has tested and rebounded from a support level stretching back to August.
BNB has not finished its downtrend on the daily timeframe. It saw a bearish structure shift in recent days when the price fell below the $818.39 low from December. While the $730 support from early August has been defended, the momentum was firmly bearish.
The selling volume took BNB’s OBV down, but the overall trend of the volume indicator has been upward over the past month. Meanwhile, the Awesome Oscillator sank below neutral zero last weekend and continued its descent during the recent price drop.
As things stand, swing traders can maintain a bearish bias. The weekly timeframe shows potential for recovery, but this could take time. Bitcoin’s momentum and the wider market fear could spook BNB investors.
The path ahead for BNB
The 10/10 crash was caused by “irresponsible marketing campaigns” by certain companies, said OKX founder Star Xu. After that day, the “market’s microstructure fundamentally changed”, read his post on X.
Bitcoin has not regained its positive correlation with traditional markets since then, reported AMBCrypto. Binance has refuted these claims that it was the trigger for that day’s massive deleveraging event, attributing the move to macro shocks instead.
Should traders sell, or stay sidelined?
The $780-$790 and the $810-$840 areas were overhead supply zones to watch out for. In particular, the former $820 support zone, now a resistance, could rebuff a lower timeframe BNB rebound.
Traders and investors can expect a bearish outcome upon such a retest. On the other hand, if $840 is reclaimed, they can flip their biases bullishly. To the south, $730 and $687 are key support levels to watch.
Final Thoughts
- The BNB price action had been strongly bullish for a good chunk of 2025, but was stuck enacting a deep retracement.
- The current bearish sentiment might take weeks to blow over, assuming a BNB long-term recovery is still feasible- which would depend on BTC holding $74k.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
